Correlation Between Gold And and Calamos Convertible

Can any of the company-specific risk be diversified away by investing in both Gold And and Calamos Convertible at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Gold And and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gold And Precious and Calamos Vertible Fund, you can compare the effects of market volatilities on Gold And and Calamos Convertible and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Gold And with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold And and Calamos Convertible.

Diversification Opportunities for Gold And and Calamos Convertible

0.1

Correlation Coefficient

Gold And  Calamos Convertible

Average diversification

The 3 months correlation between Gold and Calamos is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Gold And Precious and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and Gold And is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Gold And Precious are associated (or correlated) with Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible has no effect on the direction of Gold And i.e., Gold And and Calamos Convertible go up and down completely randomly.

Pair Corralation between Gold And and Calamos Convertible

Assuming the 90 days horizon Gold And is expected to generate 1.77 times less return on investment than Calamos Convertible. In addition to that, Gold And is 3.76 times more volatile than Calamos Vertible Fund. It trades about 0.05 of its total potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.34 per unit of volatility. If you would invest  1,752  in Calamos Vertible Fund on September 3, 2024 and sell it today you would earn a total of  191.00  from holding Calamos Vertible Fund or generate 10.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Gold And Precious  vs.  Calamos Vertible Fund

Gold And Precious

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Gold And Precious are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Gold And is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calamos Convertible

Risk-Adjusted Performance

26 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Vertible Fund are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calamos Convertible may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Gold And and Calamos Convertible

The main advantage of trading using opposite Gold And and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold And position performs unexpectedly, Calamos Convertible can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Calamos Convertible will offset losses from the drop in Calamos Convertible's long position.

The idea behind Gold And Precious and Calamos Vertible Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.